VAT Posting Setup

For correct VAT accounting, you need to set up general information on taxes in Tax Setup, periods for VAT accounting in Tax Periods. You also need to specify the rules for VAT accounting in VAT Posting Setup and set up and assign VAT business posting groups for Customers and VAT product groups for items and services.

Tax periods

To create tax periods:

1. Choose the icon, enter Tax Periods, and then choose the related link.

2. On the Tax Periods page, go to Actions => Functions => Create a Period.

3. In the Create Tax Period window, fill out the following fields:

   Field	Description
   Starting Date	Specifies the start date of new tax period. Usually the start of calendar year.
   NoPeriods	Specifies the number of periods to be created. For Ukraine, the number of periods stipulated by the law is 12.
   Periods Length	Specifies the tax period length. For Ukraine, the tax period length stipulated by the law is one calendar month (indicated as 1М in the system).

Note

Tax periods are created in order. It is not possible to create a new tax period earlier than a previously created period.

To close a tax period, on the Tax Periods page, select the required tax period and Actions => Functions => Close Period. After the tax period has been closed, it is not possible to create and record tax documents in this period.

To open a closed tax period, select a closed tax period and Actions => Functions => Open Period.

Tax Setup

1. Choose the icon, enter Tax Setup, and then choose the related link.
2. Perform all required settings on the Tax Setup page.

VAT Posting Setup

The calculation of the VAT amount for sales and purchases in the system is based on VAT Posting Setup represented by combinations of VAT business groups and item groups. For each combination, you can specify the VAT percentage, VAT calculation type, general ledger accounts for VAT posting for sales and purchases, and other required fields. To perform the settings:

1. Choose the icon, enter VAT Posting Setup, and then choose the related link.
2. Fill out all required fields in the rows for* VAT business Posting groups* and VAT product posting groups combinations.

Assigning VAT Business Posting Groups to Customers and Vendors

To assign VAT Business Posting Groups to customers or vendors, it is necessary to fill out a required field on a customer or vendor card. To do it, open a customer or vendor card, go to Invoice tab, and select a value for the VAT Business Posting Group field.

Note

The default VAT business posting groups are set up by linking them to general business posting groups. The system automatically assigns a VAT business posting group when assigning a general business posting group or customer/vendor business group.

Assigning VAT Product Posting Groups to Items and Resources

To assign a VAT Product Posting Group to an item or a resource, open an item or resource card. Go to Costs & Posting tab on the item card or the Invoicing tab on the resource tab and select a value for the VAT Prod. Posting Group field.

Assigning VAT Groups to G/L Accounts

To assign VAT posting groups to a G/L account, go to the Chart of Accounts, open a G/L account card and on the Posting tab, fill out the required fields of posting groups.

Adjustment reasons

According to the legislation of Ukraine, in the Adjustment Calculation to the VAT invoice, it is necessary to indicate the code of the adjustment reason. To set the adjustment reasons:

1. Choose the icon, enter Adjustment reasons, and then choose the related link.
2. On the Adjustment Reasons page, click New and fill out the Code, Description and Adjustment Type fields.

Note

Adjustment reason codes must comply with the legally adopted Directory of conditional adjustment reason codes.

VAT Invoice Keeping Reasons

For VAT invoices marked “Not subject to provision to the recipient (buyer) for a reason”, it is necessary to configure the reason codes for not issuing a VAT invoice. To do it:

1. Choose the icon, enter VAT Invoice Keeping Reasons, and then choose the related link.
2. On the VAT Invoice Keeping Reasons page, click New and fill out all required fields.

Note

The VAT Invoice Keeping Reasons must comply with the legally adopted Procedure for drafting VAT invoices.

Units of Measure for XML format of VAT documents

For the XML format of VAT documents,Units of Measure must be set up. To do this:

1. Choose the icon, enter Units of Measure, and then choose the related link.
2. On the Units of Measure page, fill out the Unit of Measure Code and Description for XML fields.

Note

The Unit of Measure Code and Description for XML fields must comply with the Classifier of the notation system for units of measure and accounting.

See Also

Generating Sales VAT Invoices for the period

Creating Purchase VAT Invoices